Wednesday, June 11, 2008
Microsoft Loses $1 Billion In Xbox 360 Warranty Repair
Have you ever made a really bad decision?
Well Microsoft is certainly feeling the effects of this one, as word comes that the "Red ring of death" has cost the company about a billion dollars in warranty repairs. And the kicker is that it didn't have to, according to research vice president and chief analyst at Gartner. Microsoft chose to go the cheap route with their graphics chips and not go with a application-specific integrated circuit (ASIC) vender. Microsoft figured they would design it themselves and had Taiwan Semiconductor Manufacturing make it.
That call saved them tens of Millions of dollars in design costs..... Yeah, that's what I was thinking too!
[EETimes via Gizmodo]